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Re: Questions About 401k and AGI and Traditional vs Roth IRA

As for your question about recharacterization, yes it is possible, but it's a pain in the posterior. (My husband and I did something like this once, when we had accidentally overcontributed to an SEP-IRA, but it was a paperwork hassle and I have resolved to avoid such things in the future. Life is ...
by kaneohe
Fri Nov 21, 2014 2:42 am
 
Forum: Investing - Help with Personal Investments
Topic: Questions About 401k and AGI and Traditional vs Roth IRAs
Replies: 47
Views: 2605

Re: Long term/Short term capital gain question

You titled this thread as LT/ST CG question but then didn't mention ST any more. Presumably you know that ST gains do not get the benefit of the 0% tax so if you have only held these investments a short time ,you might have to wait longer to get that benefit. Be sure to check your assumptions using ...
by kaneohe
Wed Nov 19, 2014 10:02 am
 
Forum: Investing - Help with Personal Investments
Topic: Long term/Short term capital gain question
Replies: 3
Views: 478

Re: legalities of bypass trust funding question

Looks like MD is not community property state . I know nothing about jt trusts in separate property states. Most folks that I know in separate property states seem to have separate trusts for some reason.
by kaneohe
Tue Nov 18, 2014 10:47 am
 
Forum: Personal Finance (Not Investing)
Topic: legalities of bypass trust funding question
Replies: 6
Views: 544

Re: legalities of bypass trust funding question

certainly not an estate lawyer.................in my community property state (is yours also?), my guess is that all property within the trust gets stepped up before the bypass trust is funded and half the value gets placed in the bypass (don't have to divide the shares evenly).
by kaneohe
Tue Nov 18, 2014 9:35 am
 
Forum: Personal Finance (Not Investing)
Topic: legalities of bypass trust funding question
Replies: 6
Views: 544

Re: Basic Help on Fund Distributions

http://www.marketwatch.com/story/how-mutual-fund-profits-can-get-you-in-tax-trouble-2014-09-15?page=2 In principle, the economic value of the fund does not matter on when you sell since the distribution reduces the NAV of the fund by the same amount. However, the tax consequences do matter. For an ...
by kaneohe
Tue Nov 18, 2014 8:27 am
 
Forum: Investing - Help with Personal Investments
Topic: Basic Help on Fund Distributions
Replies: 8
Views: 288

Re: another Tax Loss harvesting question

You are correct in the consequences. Unfortunately you do not get to pick and choose when to apply the losses. They apply immediately or get carried over to the next yr if you have excess losses https://ttlc.intuit.com/questions/1487179-do-i-have-to-use-available-capital-loss-carryovers-that-i-have-...
by kaneohe
Sun Nov 16, 2014 11:56 pm
 
Forum: Investing - Help with Personal Investments
Topic: another Tax Loss harvesting question
Replies: 4
Views: 561

Re: Need Help on calculating AGI/MAGI and Estimated Taxes Ow

try this calculator which is for2014 http://www.hrblock.com/get-answers/tax-calculators.html
also this one which is for 2013 https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

If you are straddling the 25-28% boundary, should be about 10K or so?
by kaneohe
Fri Nov 14, 2014 2:08 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need Help on calculating AGI/MAGI and Estimated Taxes Owed
Replies: 7
Views: 436

Re: ? "re-registrations of shares within the same fund"

Perhaps one example would if you transfer from yourselves as jt tenants to a living trust. Call VG and hopefully get the right answer.
by kaneohe
Fri Nov 14, 2014 10:18 am
 
Forum: Investing - Help with Personal Investments
Topic: ? "re-registrations of shares within the same fund"
Replies: 4
Views: 503

Re: Need Help on calculating AGI/MAGI and Estimated Taxes Ow

So the tax bracket is on taxable income and not the AGI. Therefore my Taxable Income would be $83,350 = ($66,000 + $6,400 + $1,000 + $37,600 - $17,500 - $6,200 - $3,950) The $6200 is standard deduction and $3950 is the personal exemptions. My AGI would be $93,500 = ($66,000 + $6,400 + $1,000 + $37,...
by kaneohe
Fri Nov 14, 2014 10:13 am
 
Forum: Investing - Help with Personal Investments
Topic: Need Help on calculating AGI/MAGI and Estimated Taxes Owed
Replies: 7
Views: 436

Re: Medicare Questions

to get started http://www.medicare.gov/people-like-me/new-to-medicare/getting-started-with-medicare.html The home page is http://www.medicare.gov/ Pt B is medicare. Only Medicare offers it. You can supplement it (add to it) with a Medicare supplement, also called Medigap( There are a number of stand...
by kaneohe
Thu Nov 13, 2014 11:13 pm
 
Forum: Personal Finance (Not Investing)
Topic: Medicare Questions
Replies: 7
Views: 881

Re: Why is this simple for everyone else, retiree Roth quest

IMO, your "secondary issues" are really the drivers. Particularly the impact of the way social security is taxed. At age 62/63 you have annuities/pensions. At age 70 you could have annuities/pensions + RMDs + maximum delayed social security. This bumps many/most people into a higher tax b...
by kaneohe
Thu Nov 13, 2014 10:57 pm
 
Forum: Investing - Help with Personal Investments
Topic: Why is this simple for everyone else, retiree Roth question?
Replies: 13
Views: 1450

Re: Need Help on calculating AGI/MAGI and Estimated Taxes Ow

You can find retirement account income limits, tax rate schedules, and std deduction/exemptions figures here. http://fairmark.com/general-taxation/reference-room/ Looks like std deductions/exemptions for single are about 10K which would make your taxable income in the 25% bracket. If you withhold fr...
by kaneohe
Thu Nov 13, 2014 10:21 pm
 
Forum: Investing - Help with Personal Investments
Topic: Need Help on calculating AGI/MAGI and Estimated Taxes Owed
Replies: 7
Views: 436

Re: Traditional IRA - Tax Question

larry.......I was going to suggest that you contact IRS to make their 8606 clearer so that I and others wouldn't fall in the same trap. However I discovered that IRS actually did a nice job on line3 incorporating a bolded stoplight that is supposed to stop you from going astray: http://www.irs.gov/p...
by kaneohe
Thu Nov 13, 2014 8:54 am
 
Forum: Personal Finance (Not Investing)
Topic: Traditional IRA - Tax Question
Replies: 10
Views: 681

Re: Tax Loss Harvesting Doesn't Seem Like a Great Idea

Thank you for all of the advice so far. I have one quick note and one new question. Second, I understand how offsetting your income tax is beneficial, but I played with some numbers and am not completely clear on how offsetting your capital gains is actually beneficial in the long run (assuming you...
by kaneohe
Sun Nov 09, 2014 5:06 pm
 
Forum: Investing - Theory, News & General
Topic: Tax Loss Harvesting Doesn't Seem Like a Great Idea
Replies: 52
Views: 4208

Re: Tax Loss Harvesting Doesn't Seem Like a Great Idea

...................................... If you tax loss harvest, you have three options: 1) .................................. 2) Switch into a similar but not identical funds when harvesting- Seems less risky but will complicate portfolio significantly (you will likely end up turning a 4 fund lazy ...
by kaneohe
Sun Nov 09, 2014 4:54 pm
 
Forum: Investing - Theory, News & General
Topic: Tax Loss Harvesting Doesn't Seem Like a Great Idea
Replies: 52
Views: 4208

Re: Tax Loss Harvesting Doesn't Seem Like a Great Idea

If I understand correctly, the only time where there is a benefit to tax-loss harvesting beyond offsetting up to $3,000 of income is only if 1) you are leaving the market and not re-buying or 2) there is a reason that you need to sell something with a gain right now. Is that correct? No, if you TLH...
by kaneohe
Sun Nov 09, 2014 3:53 pm
 
Forum: Investing - Theory, News & General
Topic: Tax Loss Harvesting Doesn't Seem Like a Great Idea
Replies: 52
Views: 4208

Re: Gross Income - AGI - MAGI - Tax Rates

Bonus pay withholding is different than withholding from regular pay and may be higher: http://blog.turbotax.intuit.com/2011/12/09/bonus-time-how-bonuses-are-taxed-and-treated-by-the-irs/ You seem to have the idea that since your accumulated pay each yr starts from zero and is lower early in the yea...
by kaneohe
Sun Nov 09, 2014 1:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Gross Income - AGI - MAGI - Tax Rates
Replies: 7
Views: 887

Re: Roth Conversion and Non-deductible Contributions?

Possibly there is a more obvious instruction somewhere but at least on the form 8606, the leading words are there and the line 6 "all" is bolded.................... 2 Enter your total basis in traditional IRAs (see instructions) . . . 6 Enter the value of all your traditional, SEP, and SIM...
by kaneohe
Sun Nov 09, 2014 10:00 am
 
Forum: Investing - Help with Personal Investments
Topic: Roth Conversion and Non-deductible Contributions?
Replies: 4
Views: 384

Re: California FTB Tax Notice of Assessment received

Have you talked to FTB? The few times that I've had to they seemed quite reasonable folks.
by kaneohe
Sat Nov 08, 2014 1:51 pm
 
Forum: Personal Finance (Not Investing)
Topic: California FTB Tax Notice of Assessment received
Replies: 3
Views: 654

Re: Problems with Humana Rightsource Part D HELP!!

Have you tried to talk to a supervisor? Usually they have a more global view of the issues and some level of intelligence. No guarantees at this place though.......they're the guys who, instead of taking my $12.60 monthly premium one month, decided to take a > $100 withdrawal instead. When I tried t...
by kaneohe
Fri Nov 07, 2014 11:14 pm
 
Forum: Personal Consumer Issues
Topic: Problems with Humana Rightsource Part D HELP!!
Replies: 11
Views: 757

Re: Withdrawal Restrictions on Roth, Deferred Compensation P

Here is part of a table by kawill from fairmark.com: You are correct. Since the Roth is less than 5 yrs old, you can take out contributions w/o a problem. Earnings, however, are subject to tax. The ordering rule considers your first withdrawals to be contributions so it is possible that if you withd...
by kaneohe
Fri Nov 07, 2014 10:57 pm
 
Forum: Personal Finance (Not Investing)
Topic: Withdrawal Restrictions on Roth, Deferred Compensation Plans
Replies: 4
Views: 422

Re: Who should own 529 account?

............................................... I would caution against having large 529 balances other than parents/child, because any distributions from grandparents, aunts/uncles, and others are treated as untaxed income to the child. The child's income has the greatest effect on the Expected Fa...
by kaneohe
Wed Nov 05, 2014 9:28 am
 
Forum: Personal Finance (Not Investing)
Topic: Who should own 529 account?
Replies: 9
Views: 998

Re: Taxation of earnings on non-deductible traditional IRA

I'm not sure how to interpret your company policy on rollovers. I believe a few only accept funds that came originally from company plans like 401Ks but most accept any pre-tax funds. If yours only accepts funds that came originally from 401Ks,etc., doesn't your TIRA 1 contain original TIRA contribu...
by kaneohe
Tue Nov 04, 2014 12:05 pm
 
Forum: Personal Finance (Not Investing)
Topic: Taxation of earnings on non-deductible traditional IRA
Replies: 8
Views: 697

Re: Taxation of earnings on non-deductible traditional IRA

B. (It seems I don't need to keep track of the $11K basis, as that just goes to determine the taxable amount via Form 8606 line 17. Is that correct?) As Alan mentioned in his 3) above: .... if the conversions are not fully taxable, a breakdown of the taxable and non taxable amount of the conversion...
by kaneohe
Tue Nov 04, 2014 12:43 am
 
Forum: Personal Finance (Not Investing)
Topic: Taxation of earnings on non-deductible traditional IRA
Replies: 8
Views: 697

Re: Calculating Trad-IRA contributions based on uncertain MA

You could contribute now if you wish and recharacterize any portion that is not deductible to a Roth next year when you have all your info. If you can't deduct the TIRA (or part of it), that income will be taxed. Your choices are leave it in TIRA as nondeductible or put it in a Roth (if you are marg...
by kaneohe
Mon Nov 03, 2014 3:01 pm
 
Forum: Investing - Help with Personal Investments
Topic: Calculating Trad-IRA contributions based on uncertain MAGI
Replies: 6
Views: 457

Re: Oil and Gas investments

You should be prepared for the K-1s (instead of 1099s) that these investments yield so some learning and fun :happy may be involved at tax time. I had some oil limited partnerships in the mid 80s and am happy that I survived the experience. The results were similar to what OP describes. Early write ...
by kaneohe
Sat Nov 01, 2014 12:49 pm
 
Forum: Investing - Help with Personal Investments
Topic: Oil and Gas investments
Replies: 15
Views: 1280

Re: What does this mean?

and the NAV is shown as raw data just like it was seen in real time https://personal.vanguard.com/us/funds/snapshot?FundId=0968&FundIntExt=INT#tab=1 You should see a step function discontinuity in the NAV history when the reverse split occurred (click on the view price history chart link on righ...
by kaneohe
Fri Oct 31, 2014 6:28 pm
 
Forum: Investing - Theory, News & General
Topic: What does this mean? [1 for 2 reverse share split]
Replies: 3
Views: 706

Re: Can't View Thread

interesting...I've seen locked threads which you can view but not post but never heard of removed ones. Didn't see anything that would have made me think it would be removed.
by kaneohe
Fri Oct 31, 2014 10:32 am
 
Forum: Forum Issues and Administration
Topic: Can't View Thread
Replies: 5
Views: 521

Re: Check my TLH math

from the wiki: http://www.bogleheads.org/wiki/Wash_sale How to avoid wash sales You can avoid a wash sale by avoiding either criterion: either make sure that you buy any replacement shares at least 31 days BEFORE or AFTER the sale, or buy REPLACEMENT shares that are not substantially identical. Repl...
by kaneohe
Fri Oct 31, 2014 9:20 am
 
Forum: Investing - Help with Personal Investments
Topic: Check my TLH math
Replies: 16
Views: 1093

Can't View Thread

Bogleheads • View topic - ROTH Contributions - Overboard and Set ... http://www.bogleheads.org/forum/viewtopic.php?f=10&t=149869&p... 19 hours ago - 9 posts - ‎5 authors As someone who works in tax, I have to say that ROTH contributions are being touted to a ridiculous level. I read Yahoo Fi...
by kaneohe
Thu Oct 30, 2014 8:45 pm
 
Forum: Forum Issues and Administration
Topic: Can't View Thread
Replies: 5
Views: 521

Re: 401(k) Roll over to rIRA or tIRA?

perhaps this from the wiki might be useful in the thought process: http://www.bogleheads.org/wiki/Roth_IRA_conversion
by kaneohe
Thu Oct 30, 2014 3:02 pm
 
Forum: Investing - Help with Personal Investments
Topic: 401(k) Roll over to rIRA or tIRA?
Replies: 3
Views: 324

Re: A Little Common Core Math problem

investingdad wrote: She apparently solved it iteratively by testing each answer by dividing the choices by 8 and then..


I like your way (equations) better. In the real world, she will not be gifted with a small number of possible answers to test. :happy
by kaneohe
Thu Oct 30, 2014 1:07 pm
 
Forum: Personal Consumer Issues
Topic: A Little Common Core Math problem
Replies: 97
Views: 2689

Re: How are you supposed to move a 401k

Was the new 401K that more attractive than the old? Leaving it at the old employer would have eliminated this problem but also eliminated the chance that you could have gained from the delay.
by kaneohe
Thu Oct 30, 2014 9:57 am
 
Forum: Investing - Help with Personal Investments
Topic: How are you supposed to move a 401k
Replies: 19
Views: 1326

Re: Wash sale/taxable to tax deferred question

A $10 loss at best would reduce taxable ordinary income $10 so if you're in the 25% bracket would cost you $2.50. At worst, it would reduce your net capital gains
$10 and save you 0 or $1.50. You can decide if your learning or your time is more valuable............. :happy
by kaneohe
Thu Oct 30, 2014 9:52 am
 
Forum: Investing - Help with Personal Investments
Topic: Wash sale/taxable to tax deferred question
Replies: 5
Views: 331

Re: How are you supposed to move a 401k

You can mitigate the risk of being "Out of the market" by doing partial account transfers in 2,3 or more phases. Instead of doing a complete account transfer do a transfer of a certain dollar amount each time, with the final transfer being the remaining account balance. While it's always ...
by kaneohe
Thu Oct 30, 2014 9:44 am
 
Forum: Investing - Help with Personal Investments
Topic: How are you supposed to move a 401k
Replies: 19
Views: 1326

Re: Need help: Roll over to new plan or leave $$ in old plan

........and why a Roth, instead of a TIRA? simply because you have an existing Roth IRA? yes, with Vanguard. have you read this? http://www.bogleheads.org/wiki/Roth_IRA_conversion There is a decision process to see if you should do a Roth conversion w/ its associated tax consequences.
by kaneohe
Thu Oct 30, 2014 9:00 am
 
Forum: Investing - Help with Personal Investments
Topic: Need help: Roll over to new plan or leave $$ in old plan?
Replies: 25
Views: 1614

Re: Wash sale/taxable to tax deferred question

I didn't see the word "loss" anywhere.
by kaneohe
Thu Oct 30, 2014 8:51 am
 
Forum: Investing - Help with Personal Investments
Topic: Wash sale/taxable to tax deferred question
Replies: 5
Views: 331

Re: Onetime Step up in Basis for inherited stocks

My mother has stocks that are owned individually (not through a brokerage) by her revocable trust. not a lawyer so take info w/ grain of salt. Who was/is owner of stocks? To a first order sounds like your mother but your qualifying phrase (not through a brokerage) makes it sound that she had indivi...
by kaneohe
Thu Oct 30, 2014 8:39 am
 
Forum: Personal Finance (Not Investing)
Topic: Onetime Step up in Basis for inherited stocks
Replies: 3
Views: 287

Re: Are we really in the 0% bracket?

[quote="Gattamelata"............................................... To nitpick a bit: I don't think there is a 0% bracket................................................. For instance, if your ordinary income falls into the 10% or 15% brackets, your qualified dividends and long term capita...
by kaneohe
Thu Oct 30, 2014 7:55 am
 
Forum: Personal Finance (Not Investing)
Topic: Are we really in the 0% bracket?
Replies: 32
Views: 3896

Re: Medicare Part D

Thanks, lululu, for reminding me of that hospital possibility. I also noticed on the medicare.gov plan comparison chart that there were limits on blood and foreign travel so I guess you could rack up OOP expenses if you went over the limits there.
by kaneohe
Wed Oct 29, 2014 1:50 pm
 
Forum: Personal Finance (Not Investing)
Topic: Medicare Part D
Replies: 22
Views: 1212

Re: Medicare Part D

Recommended reading: Check out the Medicare for Dummies book. The author, Patricia Barry, writes the "Ask Ms. Medicare" column for AARP. I was so impressed with the book when I got it out of the library, I ended up buying my own copy. It really untangles a lot of the confusion. (One short...
by kaneohe
Wed Oct 29, 2014 12:59 pm
 
Forum: Personal Finance (Not Investing)
Topic: Medicare Part D
Replies: 22
Views: 1212

Re: Are we really in the 0% bracket?

For reference, a documented TaxCaster LTCG bug: https://ttlc.intuit.com/questions/2579429-taxcaster-online-and-app-is-computing-long-term-capital-gains-incorrectly-when-gains-push-income-from-15-to-25-marginal-bracket THanks! Good find.............recent too. Looks like OP stumbled into it yesterda...
by kaneohe
Wed Oct 29, 2014 12:27 pm
 
Forum: Personal Finance (Not Investing)
Topic: Are we really in the 0% bracket?
Replies: 32
Views: 3896

Re: Are we really in the 0% bracket?

Might be a bug with TT? I used Taxcaster made by the same guys who made TT and got results similar to yours (the large discontinuity in tax results, not the 33K conversion). I then used the HR Block tax calculator http://www.hrblock.com/get-answers/tax-calculators.html Input same #s as you for QDIV...
by kaneohe
Wed Oct 29, 2014 11:10 am
 
Forum: Personal Finance (Not Investing)
Topic: Are we really in the 0% bracket?
Replies: 32
Views: 3896

Re: Medicare Part D

Recommended reading: Check out the Medicare for Dummies book. The author, Patricia Barry, writes the "Ask Ms. Medicare" column for AARP. I was so impressed with the book when I got it out of the library, I ended up buying my own copy. It really untangles a lot of the confusion. (One short...
by kaneohe
Wed Oct 29, 2014 9:22 am
 
Forum: Personal Finance (Not Investing)
Topic: Medicare Part D
Replies: 22
Views: 1212

Re: Need help: Roll over to new plan or leave $$ in old plan

........and why a Roth, instead of a TIRA? simply because you have an existing Roth IRA?
by kaneohe
Wed Oct 29, 2014 8:08 am
 
Forum: Investing - Help with Personal Investments
Topic: Need help: Roll over to new plan or leave $$ in old plan?
Replies: 25
Views: 1614

Re: Tax repercussions of five separate 529 accounts.

One thing I haven't seen mentioned: You're under no legal obligation to use that money on behalf of the nephews and/or nieces. If I were doing what you were doing, I'd make sure that anyone giving money for this heard that from me, because I wouldn't want them finding out about it from someone else...
by kaneohe
Wed Oct 29, 2014 7:59 am
 
Forum: Personal Finance (Not Investing)
Topic: Tax repercussions of five separate 529 accounts.
Replies: 9
Views: 883

Re: What online banks do you like for savings or MMA?

Not a long history for me but so far so good.........Synchrony Bank (formerly GE Capital Retail Bank when I started) 0.95%, advertising like mad, simplifying tier interest rate tier structure, reducing minimum balances and nuisance fees, etc. to attract new customers. One of the few to pass my scree...
by kaneohe
Wed Oct 29, 2014 7:35 am
 
Forum: Personal Finance (Not Investing)
Topic: What online banks do you like for savings or MMA?
Replies: 44
Views: 3093

Re: Are we really in the 0% bracket?

Turbo tax seems to be telling us that we can convert about $33000 and pay zero taxes, but any more will trigger about $10000 tax. It seems to say that there is no level of conversion that will produce 15%. It's either zero or more than 15% marginal. Can this be true? are you using TT software (whic...
by kaneohe
Tue Oct 28, 2014 10:53 pm
 
Forum: Personal Finance (Not Investing)
Topic: Are we really in the 0% bracket?
Replies: 32
Views: 3896

Re: Are we really in the 0% bracket?

Are you over 65? When I plug in $6,600 of Qualified Dividends and $70,000 or LTCG, I show you could have $15,900 of conversions before you'd have a tax liability. This is assuming MFJ, 2 exemptions, Under 65, using 2013 tax rates. but do you show a jump from 0 taxes to something near 10K with a $1 ...
by kaneohe
Tue Oct 28, 2014 5:39 pm
 
Forum: Personal Finance (Not Investing)
Topic: Are we really in the 0% bracket?
Replies: 32
Views: 3896
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